Dallas-based SoftLayer Technologies to be acquired by IBM

The financial terms were not disclosed. But person familiar with the deal told the Wall Street Journal that the deal is worth around $2 billion.

If so, the acquisition is a huge deal for the Dallas startup community. The region’s entrepreneurs and observers had been speculating recently that SoftLayer would be the area’s next big exit.

SoftLayer was founded in 2005 and since then, it has grown into a $400 million business with more than 700 employees and 20,000 customers around the world.

“SoftLayer has a strong track record with born-on-the-cloud companies, and our move with IBM today will rapidly expand that footprint globally as well as allow us to go deep into the large enterprise market,” said CEO Lance Crosby.

For IBM, the purchase shores up its cloud computing efforts. Specifically, IBM said in a release that SoftLayer will allow it to provide faster deployment of cloud computing for small, medium and large businesses.

IBM expects to generate $7 billion annually in cloud revenue by the end of 2015.

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